3 Healthcare Stocks Paying Reliable Dividends

Healthcare stocks can be a good investment for long-term growth and stability. The healthcare sector is generally less susceptible to economic downturns. Steady growth is expected in the coming years due to an aging population and growing demand for healthcare services.

However, not all healthcare stocks pay reliable dividends, meaning they pay a fair amount and do so consistently.

Here are three reputable healthcare stocks you might not know are paying solid dividends.

First, Inc.

Headquartered in North Carolina, Premier, Inc (NASDAQ: PINC) is a healthcare services company. Their main focus is on providing medical and surgical products, laboratory supplies and clinical engineering solutions and workforce. They are also relatively small, with only approx $4.15 billion market cap.

But what they might be lacking in size, they’re certainly making up for in volume, contributing to their Moderate Buy rating. For example, their the average daily trading volume is 462,855 shares, but during the first week of the new year (2023) slightly more than average were traded. This indicates a lot of interest, which makes sense since the stock currently has a P/E ratio of 22.57.

With this in mind, the company pays a annual dividend of $0.84 with a dividend yield of 2.40%. All of which amounts to an impressive Dividend distribution ratio of 54.19%.but more importantly, the dividend has steadily increased over the past 2 years and it looks like the trend will continue.

After all, the company also expects its share value to improve 15.0%, from $34.98 per share to $40.56. And they should be on track for this modest growth as the share value has improved by 1.42% on the quarter and has increased by 3.07% in the last 30 days.

Patterson Companies, Inc.

Patterson Companies, Inc (NASDAQ: PDCO) is a small Minnesota-based company that you’ve probably never heard of because, well, for example, it distributes dental and animal health products throughout the UK, the US and Canada. They operate these operations in three segments.

Their dental segments supply everything from oral infection control to consumables to various types of clinical equipment. Their animal health segment distributes dietary and medical care and equipment to animal health service providers. Finally, their business segment provides financial services and sells other miscellaneous products.

However, you may also not have heard of Patterson Companies Inc because they are quite small. Their market cap is less than $3 billion, which means that while they don’t technically qualify as small-cap stocks, they are on the threshold. And with a modest average daily trading volume of just 741,149 shares, it would be easy to accept them as a small company.

That said, PDCO offers a promising dividend yield of 3.71% with a annual dividend of $1.04 per share. This equates to an impressive dividend payout ratio of 51.23%. And while the P/E ratio of 13.81 it’s not ideal, it’s not too shabby either, and it should get a little help from Expected earnings growth of 5.26%..

Also, in their most recent earnings report, PDCO had a EPS of $0.63, beating the consensus estimate of $0.06. Their next reporting date is scheduled for the end of February, and in that report, analysts predict a price target of $28.03, which represents an upside of 20.7%. These rather scarce numbers, together with the youth of the stock, probably contribute to the analysts’ assessment of HOLD.

Walgreens Boots Alliance, Inc

Founded in 1901, Walgreens Boots Alliance, Inc (Nasdaq: WBA) is among the best known and most respected providers of public health services. The company operates healthcare and pharmaceutical offices and retail outlets in the United States, parts of Europe and the rest of the world.

Their retail segment focuses on prescription drugs, personal care and beauty, and general health and wellness products. They currently operate 8,886 retail stores in the United States (under the Walgreens and Duane Reade entities). Internationally, they operate approximately 4,700 locations.

Their stock is also considered to be among the most premium available today, and with a dividend yield of 5.14%, it’s easy to see why. But with the stock at a present value of just $37.19 a share, WBA is surprisingly affordable, especially with 3-year annualized dividend growth of 4.00% and a 46-year track record. Of course, that may not stay that way, as analysts have given the stock a price target of $43.85, which represents an 18.0% upside.

Like the other two stocks on this list, WBA is currently trading at high relative volume. At the peak of the year, WBA daily trading volume was well above average, at 7.26 million (compared to an average of 5.13 million). This stock is different, however, because its market cap is significantly higher ($32.07 billion) and its P/E ratio of 7.44 is significantly lower, as is projected earnings growth of 5.76. %. And all of this justifies their current HOLD rating.

Before you consider Patterson Companies, you’ll want to hear this.

MarketBeat tracks Wall Street’s top-rated and best-performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are whispering to their clients to buy now before the broader market catches on…and Patterson Companies wasn’t on the list.

While Patterson Companies currently has a “Hold” rating among analysts, senior analysts believe these five stocks are better buys.

View the five titles here


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